When Pop Mart’s Labubu first began popping up in collectors’ feeds around 2024, few could have predicted that the mischievous creature would kickstart a global frenzy for what the internet now calls “ugly-cute” toys. But why would people spend so much money to buy dolls that don’t fit the stereotypical standards of pretty?
The latest to ride this wave is Monchhichi, a Japanese character first introduced in 1974. With its thumb-sucking habit, plastic face and soft fur, Monchhichi was once the definition of kawaii (cute) culture. Today, it is back, this time dangling from Chanel bags and lighting up TikTok screens, courtesy of Gen Z and the influencer economy.
The rise of a trend
Labubu’s ascent was no accident. Produced by Chinese company Pop Mart, the bug-eyed, gremlin-like creature tapped into the growing blind-box culture and a yearning for collectables that feel rare and personal. Soon, Instagram and TikTok were awash with unboxing videos, resale chatter, and “toy hunt” vlogs. The appeal spread beyond art toy loyalists, creating a new class of lifestyle accessory that blends nostalgia with self-expression.
Once Labubu took off, the formula became clear: limited drops, collaborations with pop culture IPs, and scarcity-driven hype. Every few weeks, a new character, Sonny Angel, Molly, Dimoo, captured online attention, each more unconventional than the last. Unlike mainstream plush toys designed to be universally appealing, these figures thrive on being polarising, “so ugly they’re cute”.
Why are people spending so much?
For Gen Z consumers, these toys are not mere playthings but cultural signals. They sit at the intersection of fashion, social media, and identity. A Monchhichi keychain, priced at around $14 to $200+, can fetch double or triple that on resale platforms tied to a coveted collaboration, such as Hello Kitty or Paris Saint-Germain.
The thrill of scoring a limited edition, the aesthetic value of pairing a fluffy mascot with a luxury handbag, and the validation of likes and comments online make these purchases feel like an experience rather than an expense.
Psychologists link this behaviour to the dopamine hit of unpredictability, amplified by blind-box models where buyers do not know which design they will get. Add celebrity endorsements, BLACKPINK’s Lisa and RIIZE’s Sohee have flaunted these ugly dolls on Instagram, and you have a trend that thrives on visibility and aspiration.
Monchhichi’s second life
Originally launched by Tokyo-based Sekiguchi Corporation, Monchhichi was conceived as a symbol of love and friendship. Its quirky design, somewhere between a monkey and a human baby, resonated with children in Japan and Europe during the 1980s. Sales slowed in the 1990s, but Sekiguchi quietly kept the brand alive, even introducing spin-offs like Bebichhichi.
Fast forward to 2025: Monchhichi’s annual revenue has doubled to 4.6 billion yen (approximately $32 million), with international markets accounting for 40% of sales. Urban Outfitters stocks Monchhichi charms; pop-up cafes in Japan celebrate its legacy; and hashtags like #MonchhichiHunt dominate TikTok. Limited runs sell out within hours at Harajuku stores, often with purchase limits to curb resellers.
Sekiguchi’s strategy leans heavily on nostalgia and fashion integration. Instead of offering mix-and-match outfits, the company sells pre-dressed dolls in themed collections. cheerleaders, café staff, even high-fashion collabs, positioning them as both collectable art and style accessory.
Analysts see this as part of a broader “emotional luxury” trend. At a time when digital fatigue is real and economic uncertainty lingers, consumers are seeking joy in tangible, playful objects that offer comfort and community. Plush charms hanging from luxury handbags signal a conscious break from the understated “quiet luxury” aesthetic, replacing minimalism with whimsy.
But the craze is not without concerns. Counterfeit products are flooding online platforms, and reports of stampedes at toy pop-ups in Asia mirror the intensity seen in sneaker culture. Still, for now, the market shows no signs of slowing. The global keychain industry alone is projected to hit $28 billion by 2033, and Monchhichi, it seems, is perfectly placed to keep dangling from the trend.